AUD: Sorry, Oz; Selling AUD/USD - TD

By eFXdata — May 14 - 09:15 AM

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TD Research comments on its latest short AUD/USD position from yesterday targeting a move towards 0.6175.

"Yesterday, we initiated a short AUDUSD, resting on a few drivers like valuation, geopolitics, and a shift in the narrative. While we still like the structural story (forecasting a push above 0.70 in 2021), the price action has moved too far, too fast...We don't rely exclusively on valuation models for trade signals. Still, they're usually quite robust when the market may have mispriced the narrative or when the narrative is about to change," TD notes.

"The takeaway is that the immediate backdrop for AUD has become seemingly negative at a time when the narrative linked to the US and China is also turning sour," TD adds.